Chapter Questions

Which of the following is an effect of globalization? A. Creating a borderless world where economic integration becomes extreme B. Reducing interdependence among the components in the global economy C. Increasing the importance of nation states D. Reducing cooperation among nations in the global economy E. Weakening economic integration across countries

A. Creating a borderless world where economic integration becomes extreme

A food chain is getting complaints from customers that the waiting time is too long from the time of order placement to the time of delivery during certain times of the day. The outlet wants to allocate service personnel and workstations based on alternative workload demands and in a way that minimizes both customer waiting times and costs of service workers. Which of the following quantitative approaches is the outlet most likely to apply? A. Queuing theory B. Network models C. Linear programming D. Mathematical forecasting E. Inventory analysis

A. Queuing theory

An organization structure refers to: A. a system of tasks, reporting relationships, and communication linkages. B. the group of employees who perform jobs together in the same location. C. a relationship between two or more firms to meet a particular business need. D. a cooperation agreement with another organization to jointly pursue activities of mutual interest. E. the network of employees in a particular team.

A. a system of tasks, reporting relationships, and communication linkages.

The _____ approaches assume that people are social and self-actualizing, enjoy social relationships, respond to group pressures, and search for personal fulfillment. A. behavioral B. classical C. modern D. scientific management E. contingency thinking

A. behavioral

According to the life cycle of entrepreneurial firms, the birth stage signifies the stage in which the: A. entrepreneur struggles to get the new venture established and survive long enough to test the viability of the underlying business model in the marketplace. B. business model begins to work well, growth is experienced, and the complexity of managing the business operation expands significantly. C. entrepreneur recognizes a niche in the market and formulates an idea to take advantage of it. D. entrepreneur experiences the advantages of market success and financial stability. E. entrepreneur faces the continuing management challenge of remaining competitive in a changing environment.

A. entrepreneur struggles to get the new venture established and survive long enough to test the viability of the underlying business model in the marketplace.

Which of the following is a terminal value? A. Happiness B. Self-discipline C. Honesty D. Ambition E. Imagination

A. Happiness

_____ are formed among persons who share the same skills and work responsibilities. A. Occupational and functional subcultures B. Gender subcultures C. Generational subcultures D. Ethnic or national subcultures E. Cohort subcultures

A. Occupational and functional subcultures

Adzen Inc., an advertising firm, has a horizontal structure with simple rules and procedures. It achieves targets by having personal means of coordination. The firm values the existence of informal groups and does not believe in division of labor. Which of the following designs is being used by Adzen Inc.? A. Organic B. Bureaucratic C. Authoritative D. Nonadaptive E. Centralized

A. Organic

Which of the following change strategies in an organization pursues change through empirical data and sound argument? A. Rational persuasion strategy B. Force-coercion strategy C. Environmental-adaptive strategy D. Shared power strategy E. Authoritarian strategy

A. Rational persuasion strategy

Corporate governance is most likely to occur when: A. a board of directors holds the top management accountable for organizational performance. B. top managers guide the performance of an organization as a whole. C. the traditional top-down "do as I say" form of management prevails. D. team leaders report to middle managers about the performance of the nonmanagerial workers. E. minority members are denied the full benefits of organizational membership.

A. a board of directors holds the top management accountable for organizational performance.

_____ is the requirement of one person to show performance results to a supervisor. A. Accountability B. Performance effectiveness C. Competency D. Performance efficiency E. Productivity

A. accountability

In the context of the management process, leading primarily involves: A. arousing enthusiasm and inspiring efforts to achieve goals. B. developing action priorities for accomplishing goals and plans. C. assigning tasks, allocating resources, and coordinating work activities. D. preparing team members to achieve closure and disband. E. setting objectives and determining what should be done to accomplish them.

A. arousing enthusiasm and inspiring efforts to achieve goals

In the context of the management process, organizing is the process of: A. assigning tasks, allocating resources, and coordinating work activities. B. measuring performance and taking action to ensure desired results. C. motivating team members to increase team cohesiveness to ensure the occurrence of groupthink. D. setting objectives and determining what should be done to accomplish them. E. preparing team members to achieve closure and disband.

A. assigning tasks, allocating resources, and coordinating work activities.

Brendon, a software engineer at Re-Soft Inc., has to report to two managers at the same time, a functional manager and a team manager. In the context of divisional structures, Brendon is working in a _____ structure. A. matrix B. customer C. process D. product E. geographical

A. matrix

A(n) _____ is a statement of action steps to be taken in order to accomplish the objectives. A. plan B. concept C. guideline D. objective E. goal

A. plan

A decision that chooses the first acceptable alternative that comes to one's attention is called a(n) _____ decision. A. satisficing B. influential C. optimizing D. fully informed E. absolute best

A. satisficing

A(n) _____ environment lacks so much information that it is difficult to assign probabilities to the likely outcomes of alternatives. A. uncertain B. anticipated C. certain D. threat E. risk

A. uncertain

According to the individualism view of ethical behavior, society will be best off if: A. everyone works toward the betterment of society. B. everyone acts in a way that maximizes his or her own happiness. C. everyone follows a universal moral code of behavior. D. everybody lives by the letter of the law. E. individuals make decisions based on the greater common good.

B. everyone acts in a way that maximizes his or her own happiness.

Insufficient financing implies: A. not having expertise in the essentials of business operations, including finance. B. not having enough money available to maintain operations while still building the business and gaining access to customers and markets. C. not taking the time to consolidate a position, fine-tune the organization, and systematically meet the challenges of growth. D. not making the best use of existing monies. E. not keeping track of the numbers, and failure to keep business finances to best advantage.

B. not having enough money available to maintain operations while still building the business and gaining access to customers and markets.

In the planning process, _____ are the specific results or desired outcomes that one intends to achieve. A. procedures B. objectives and goals C. beliefs and culture D. guidelines E. policies

B. objectives and goals

_____ identifies alternative courses of action to take when things go wrong. A. Internal benchmarking B. Contingency planning C. External benchmarking D. Goal setting E. Staff planning

B. Contingency planning

Which of the following creates products or services that become so widely used that they largely replace prior practices and competitors? A. Sustainability B. Disruptive innovation C. Sustaining innovation D. Incremental change E. Transformational innovation

B. Disruptive innovation

_____ is the overall quality of human experiences in the workplace. A. Performance effectiveness B. Quality of work life C. Productivity D. Performance efficiency E. Competency

B. Quality of work life

Why is corporate governance essential in an organization? A. To be compliant and uncritical in endorsing all management decisions B. To ensure that the strategic management is successful C. To criticize and condone the status quo D. To downsize the workforce so as to earn less cost of production E. To avoid rigorous oversight and accountability

B. To ensure that the strategic management is successful

Strategies, such as framing, that are used for simplifying decision making are known as _____. A. algorithmics B. heuristics C. statistics D. optimizing strategies E. data mining

B. heuristics

In the context of organizational change, _____ change bends and adjusts existing ways to improve performance. A. top-down B. incremental C. frame-breaking D. radical E. transformational

B. incremental

A(n) _____ expresses an organization's reason for existence in society. A. net worth statement B. mission statement C. cash flow statement D. statement of purpose E. operating objective

B. mission statement

A _____ strategy primarily customizes products and advertising to best fit local needs. A. cost leadership B. multidomestic C. differentiation D. transnational E. co-opetition

B. multidomestic

Leisure Viaje is a major tour operator in the country. Four senior managers look after the company's operations in 20 locations. All these senior managers report to the general manager of the company who is stationed at the company headquarter in Chicago. This description represents the _____ of the company. A. mission B. organization chart C. focal structure D. code of conduct E. social network

B. organization chart

Managers who are _____ make a plan before taking action and carefully search for information to facilitate problem solving in a step-by-step fashion. A. spontaneous B. systematic C. flexible D. instinctive E. intuitive

B. systematic

Monochronic cultures focus on _____. A. gestures B. time C. space D. written language E. social context

B. time

Bella Dairy Products, a company producing ice creams, has recently bought two dairy farms. This strategic action falls under the category of _____. A. retrenchment B. vertical integration C. divestiture D. growth through concentration E. franchising

B. vertical integration

In which step of the planning process would one know where one is placed in reaching the goals, and what strengths work in one's favor and what weaknesses may hold one back? A. Implementing the plan and evaluating results B. Analyzing alternatives and making a plan C. Determining where one stands vis-à-vis objectives D. Defining the objectives E. Developing premises regarding future conditions

C. Determining where one stands vis-à-vis objectives

Cultures where it is possible to begin making business deals only after social relationships are established are referred to as _____ cultures. A. polychronic B. popular C. high-context D. xenocentric E. ethnocentric

C. high-context

According to McGregor's Theory X, _____. A. people at work rationally consider opportunities made available to them B. people are social and self-actualizing C. people dislike work, lack ambition, act irresponsibly, and prefer to be led D. a satisfied need does not motivate behavior E. a need is activated only when the next-lower-level need is satisfied

C. people dislike work, lack ambition, act irresponsibly, and prefer to be led

At the level of _____ needs, the deficit and progression principles cease to operate. A. physiological B. social C. self-actualization D. esteem E. safety

C. self-actualization

Which of the following is a horizontal structure that brings together members from different departments such as marketing, production, and accounting? A. Divisional structure B. Functional structure C. Cross-functional team D. Process structure E. Product-oriented team

C. Cross-functional team

_____ is the system of shared beliefs and values that guides behavior in organizations. A. Organizational dynamics B. Organizational workflow C. Organizational culture D. Organizational tactics E. Organizational motives

C. Organizational culture

Ryan, the marketing manager at a company, decides to invest more money to promote a technology that has earlier failed at the market due to its technical incompetency. Ryan is unwilling to accept that the product lacks the competitive edge to survive in the market. He is not ready to admit his mistakes and applies more resources to pursue a course of action that is not working. This type of decision-making trap is known as _____. A. framing error B. lack-of-participation error C. escalating commitment D. strategic opportunism E. confirmation error

C. escalating commitment

Qualitative forecasting uses _____ to predict future events. A. statistical analyses B. surveys C. expert opinions D. mathematical models E. budgets

C. expert opinions

Charlie oversees all the operations of a firm, from purchasing to manufacturing to human resources to finance and accounting functions. Charlie is the _____ of the firm. A. line manager B. functional manager C. general manager D. team leader E. director

C. general manager

Team leaders ideally report to the _____. A. board of directors B. board of trustees C. middle managers D. top managers E. first-line managers

C. middle managers

Procedures are stated in employee handbooks and often called _____. A. bureaucratic procedures B. experimental procedures C. standard operating procedures D. contingency procedures E. catalogued procedures

C. standard operating procedures

_____ tries to match managerial responses with problems and opportunities specific to different people and settings. A. Knowledge management B. Evidence-based management C. Quantitative analysis D. Contingency thinking E. Total quality management

D. Contingency thinking

_____ is the predominant value system for the enterprise as a whole. A. Functional culture B. Corporate subculture C. Leadership value system D. Organizational culture E. Managerial value system

D. Organizational culture

In high uncertainty-avoidance cultures, one would expect to find a preference for _____. A. ambiguity B. openness to risk C. innovation D. predictability E. openness to change

D. predictability

_____ are formed among persons who work together and share similar ages, such as Millennials and Baby Boomers. A. Gender subcultures B. Organizational sects C. Ethnic subcultures D. Generational subcultures E. Functional subcultures

D. Generational subcultures

Slice-It Inc., a fast food organization operating in many countries, varies its menus in different countries according to local tastes and preferences. It groups together employees and tasks working in the same location. Which of the following structures is Slice-It Inc. using? A. Functional structure B. Product structure C. Customer structure D. Geographical structure E. Process structure

D. Geographical structure

_____ is the worldwide interdependence of resource flows, product markets, and business competition. A. Diversification B. Nationalization C. Orientalism D. Globalization E. Collectivism

D. Globalization

Which of the following is the first step in a decision-making process? A. Generating alternative solutions B. Evaluating alternative solutions C. Choosing a preferred course of action D. Identifying and defining a problem E. Evaluating results

D. Identifying and defining a problem

In the context of the management process, which of the following best describes the process of controlling? A. It is the process of assigning tasks, allocating resources, and coordinating work activities. B. It is the process of developing action priorities for accomplishing goals and plans. C. It is the process of setting objectives and determining what should be done to accomplish them. D. It is the process of measuring performance and taking action to ensure desired results. E. It is the process of arousing enthusiasm and inspiring efforts to achieve goals.

D. It is the process of measuring performance and taking action to ensure desired results.

Which of the following is a defining characteristic of knowledge workers? A. They have a high degree of cohesiveness and are prone to groupthink. B. They are part of an unofficial group emerging from relationships and shared interests among members. C. They are grouped together for a specific purpose and are disbanded when their task is completed. D. They are valued for their creative minds, not just their physical capabilities. E. They work only in the information technology industry.

D. They are valued for their creative minds, not just their physical capabilities.

Which of the following is an example of an ethical dilemma? A. Steward, an engineer, gives his office laptop to his daughter as a birthday gift. B. Martha, who had filed in her personal details that she was an American, is hired as a receptionist despite some of her co-workers apprehension about her racial identity. C. Wanda, an employee at a real estate firm, files a sexual harassment case against her manger despite his repeated apologies. D. Vince, a government employee, knows that he should not accept bribes, but is tempted to take the money to save a sick kid. E. Clara fires half of her employees so as to decrease the cost of inputs of her company.

D. Vince, a government employee, knows that he should not accept bribes, but is tempted to take the money to save a sick kid.

Businesses or products with high-market shares in low-growth markets are referred to as _____ in the BCG Matrix. A. Question Marks B. Dogs C. Stars D. Cash Cows E. Apples

D. cash cows

A(n) _____ environment offers complete information on possible action alternatives and their consequences. A. uncertain B. speculative C. unanticipated D. certain E. risk

D. certain

Michael has been a manager at Rexgen Systems for two years. He is known to be a risk-taker and always waits for the next big project. He is a hard worker and takes initiative to handle critical issues. Michael is a _____. A. group thinker B. benevolent autocrat C. passive manager D. change leader E. status quo manager

D. change leader

Value-based management: A. suppresses the idea of innovation within the organization. B. increases an organization's tolerance for ambiguity. C. emphasizes the rigidity of the organization's regulations. D. communicates and enacts an organization's core beliefs. E. improves the observable culture of an organization.

D. communicates and enacts an organization's core beliefs.

The process of entrusting work to others by giving them the right to make decisions and take action is referred to as _____. A. centralization B. bureaucratization C. adaption D. delegation E. mechanization

D. delegation

A(n) _____ occurs when a problem is evaluated and resolved in the context in which it is perceived. A. availability bias B. confirmation error C. lack-of-participation error D. framing error E. escalating commitmen

D. framing error

The chain of command: A. horizontally links all positions of an organization's management. B. operates with a minimum of bureaucratic features. C. is the process of distributing and entrusting work to other persons. D. links all persons with successively higher levels of authority. E. is the number of subordinates directly reporting to a manager.

D. links all persons with successively higher levels of authority.

Eureka Electronics Inc. offers computer programs and software programs including software drivers and plug-ins that can be self-installed easily. The firm's introduction of programs that can be self-installed is an example of _____ innovation. A. product B. business model C. social business D. process E. reverse

D. process

In the context of organizational change, _____ results in a major and comprehensive redirection of the organization. A. incremental change B. continuous improvement change C. frame-bending change D. transformational change E. bottom-up change

D. transformational change

Which of the following is a spotlight question when dealing with ethical dilemmas? A. How will my career be affected by my decision? B. Are there any legal consequences to my decision? C. Who will be affected by my decision? D. What sort of trouble will I get into because of my decision? E. How will I feel if my family finds out about my decision?

E. How will I feel if my family finds out about my decision?

A(n) _____ plan describes the direction for a new business and the financing needed to operate it. A. feasibility B. succession C. structural D. operational E. business

E. business

A _____ is a business in which the owner of a business sells to another the right to operate the same business in another location. A. non-profit organization B. family business C. wholly-owned subsidiary D. joint venture E. franchise

E. franchise

Stating that the failure of a small business was due to "lack of experience" implies: A. not taking the time to craft a vision and mission, nor to formulate and properly implement a strategy. B. not taking the time to consolidate a position, fine-tune the organization, and systematically meet the challenges of growth. C. not having expertise in the essentials of business operations, including finance, purchasing, selling, and production. D. not keeping track of the numbers, and failure to control business finances and use existing monies to best advantage. E. not having sufficient know-how to run a business in the chosen market or geographical area.

E. not having sufficient know-how to run a business in the chosen market or geographical area.

Which of the following emphasizes formal authority, order, fairness, and efficiency? A. Boundaryless organization B. Decentralization C. Strategic business unit D. Strategic alliance E. Bureaucracy

E. Bureaucracy

Which of the following is an instrumental value? A. Freedom B. Self-respect C. Family security D. Happiness E. Honesty

E. Honesty

Four Rollers Corp., an automobile company, benefits by spending less than its competitors on labor, operations, promotions, and features offered. This enables the firm to charge relatively lower prices on its goods from its customers. Which of the following is a competitive advantage of the firm? A. Adaptability B. Delivery C. High quality D. Flexibility E. Low costs

E. Low costs

Which of the following types of budgets plot anticipated sales or revenues against expenses? A. Financial budgets B. Fixed budgets C. Nonmonetary budgets D. Zero-based budgets E. Operating budgets

E. Operating budgets

Which of the following is true of strategic plans? A. They are short-range plans to achieve an immediate goal. B. They are focused only on a particular department or group of employees in the organization. C. Plans at the middle and lower levels of the traditional organizational pyramid tend to be strategic. D. They refer to the "tactical" plans of the organization. E. They ideally set forth the goals and objectives needed to accomplish the organization's vision. Q

E. They ideally set forth the goals and objectives needed to accomplish the organization's vision.

According to Kurt Lewin's model for planned change, which of the following phases involves preparing a system for change? A. Changing phase B. Improvising phase C. Refreezing phase D. Coercing phase E. Unfreezing phase

E. Unfreezing phase

Which of the following is a single-use plan? A. A mission B. A procedure C. A vision D. A policy E. A budget

E. a budget

In the context of change leadership, _____ implies that change initiatives come from lower levels in the organization. A. frame-breaking change B. transformational change C. radical change D. top-down change E. bottom-up change

E. bottom-up change

Silver Finance requires that its interest rate planning process include its employees, managers, some customers, and others who will be affected by the resulting plans and/or will be asked to help implement them. Silver Finance is utilizing _____. A. scenario planning B. contingency planning C. benchmarking D. management by objectives E. participatory planning

E. participatory planning

A business model is a: A. plan that describes the organizational structure of the company. B. plan to determine the strengths and viability of a company's organizational structure. C. model that depicts the detail of an organization's workflow. D. model that lists the details of all the employees of an organization. E. plan for making a profit by generating revenues that are greater than costs.

E. plan for making a profit by generating revenues that are greater than costs.

Brazen Inc. introduced a new line of deodorized clothes produced with natural ingredients such as flowers and fruits, to reduce the impact of the environmental hazards caused by the production of deodorants. This implies that Brazen Inc. was engaging in _____. A. process innovation B. performance innovation C. skimming D. business model innovation E. product innovation

E. product innovation

A _____ decision applies a solution from past experience to a routine problem. A. nonrecurring B. unique C. tactical D. nonprogrammed E. programmed

E. programmed

Four engineers from the technology cell of a company are required to work together for a certain time on a job till the job is completed. This is an example of a(n) _____. A. outsourcing strategic alliance B. boundaryless organization C. functional silo D. cross-functional team E. project team

E. project team

A(n) _____ environment lacks complete information but offers "probabilities" of the likely outcomes for possible action alternatives. A. certain B. uncertain C. secure D. definite E. risk

E. risk